Seven of Ireland’s largest credit unions are now offering loans to farmers and agri food small and medium enterprises (SME) under the Government’s COVID-19 Credit Guarantee scheme.

Under the scheme, farmers and agri food SMEs can apply for loans ranging from €10,000 up to €1m that can be repaid over a maximum of five-and-a-half years.

Farmers and businesses that can demonstrate how COVID-19 has had a negative impact on their business of at least 15% will be eligible for the state-backed loans.

The seven credit unions participating in the scheme are located in Kerry (Cara CU), Mayo (First Choice CU), Laois (People First CU), Fermoy (Synergy CU), Kilkenny (St Canice’s CU), Mallow and Limerick.

These credit unions are all members of Metamo, a new joint venture between the credit unions and Fexco, a financial services company based in Kilorglin, Co Kerry.

Speaking to the Irish Farmers Journal, Metamo CEO Alan Kelly said the seven credit unions would be able to offer loans at a cheaper interest rate of about 5% as the loans are back by the government’s COVID-19 Credit Guarantee Scheme, which guarantees all loans up to 80% of their value, meaning it takes most of the risk away from the lender and allows for a lower rate.